Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
$ \+ K0 ~8 K+ b4 ~1 Hcompanies producing Jet fuels but Biofuels. Also no wonder if some of
! t- Q9 K# p6 }  Y' Q9 T# M  fthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
! F+ R( C7 m* u  PEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
- n0 f& t, u/ _! ?8 O3 emonths. There are three wars going on in Gaza, Iraq and Afghandistan.
+ y1 m$ @- X+ Y; L7 V! GA year ago these things would have spiked the price of crude oil by at
% ^9 J4 `( C5 @  oleast $50.00 per barrel. Today, oil price declined by a record amount.

1 x) \' J$ d6 B' R' w. d
' \  c7 {8 j" K# y1 l+ BThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
; v- n1 k7 u- ^, U

. q5 b' ~9 t7 C; i  N; M1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
5 v" t  H! H+ {  c3 wArabia.


) L$ z, a4 B+ u3 W* e2. New natural gas has been found in Pennsylvania and West Virginia.
( F+ e3 y+ n$ a2 f1 rThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
5 R* C$ o# E7 u: Q& r# J+ ]* eracing to produce bio fuels.
- o( E, K+ W* Z7 t' Z! B9 [5 j
. A& s' X/ U" @: \; ?* M
5. Virtually every restaurant in the US and all food processing plants
5 P; D  b& Q! R( a4 bare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
& Z- Y1 r5 F9 _& O, Y! h/ |- s2 ?producing 30,000 gallons of bio-diesel per day from pork fat.
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% k5 O' s( x" X+ t( J
! C  c4 p# ^' y. c8 h8 o6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
' i4 M6 e( ~: D8 \% fexpected to be built in the future. Much of the energy they produce
will replace oil.


8 x: w  ^4 o, ], L* Z7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
5 H: X! l, y. L3 lwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


+ w1 w0 S$ l( L0 ]: y9 l8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
- k) @; G8 m# t$ lproduced as a byproduct is sold to oil companies for injection into
oil wells.
' j7 \7 j5 i3 p9 K. V7 k

10. Solar, wind and ocean energy is displacing oil as an energy
- _& L7 x5 t: K( p3 qsource. Three new wind turbines are being erected every day in the US.


' L! o% f1 m5 I2 H# X0 yEach of the above by itself will not make a large difference in the
2 u/ Y+ D5 |6 ]) t* ?& H- \price of crude oil but the sum of all of them together is world
* ]& c) E3 v$ C. |$ Fchanging. The important thing is that OPEC no longer has the ability
& L4 z, @: G+ O: S! ~8 |1 X, Jto control oil prices.
6 x& j7 a5 b- D' t8 w( Q7 _

With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
0 \4 q: O4 k4 O8 U9 _value .....
" [8 X6 d. y; g" g% ~" z7 m# Z3 \IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


& L' G0 {4 I  e$ WThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only